Corporate Presentation - November 2011 - ShaMaran Petroleum ...

Exploration & Development in KurdistanNovember, 2011

A Lundin Group Company2

In the Heart of the Middle East: Kurdistan3Kurdistan» Over 55% of the World’s oil reservesare in the Middle East *» Kurdistan region is projected to have70 billion barrels of oil reserves and200 TCM of gas**» Kurdistan is the only region in theMiddle East which is open to industrywith good commercial termsSources:* BP Statistical Review 2010** Dr. Ashti Hawrami, Minister for Natural Resources, KRG

ShaMaran in the Land of the Giants4Pursuing Exploration, Appraisal & Development Opportunities..........in one of the World’s most prolific petroleum provinces

Kurdistan in Earliest Phase of Exploration5» Less than 10 exploration wells drilled inKurdistan prior to 2006 due to politics andpredominance of Kirkuk» Prior drilling based on surface anticlines andseeps - no seismic» 25 wells drilled in the last 5 years with over 70%success rate for finding oilKURDISTANLegendOil FieldGas FieldProspect

Additional Industry Interest Imminent6» Most of the prospective acreage has been taken up» Largest oil companies working in the south are not working inKurdistanKurdistan» Passing of the Oil & Gas Law would spark a significantadditional interest in Kurdistan» New entrants will have to pay a huge premium to get intoKurdistan» Consolidation has commenced: Several recent deals (Afren,Hess, Maersk Oil, Oryx, Repsol, PetroCeltic, Genel/Vallares)Oklahoma Land Rush, April 1889

Asset Summary7ShaMaran has one of the best acreagepositions in Kurdistan:» Pulkhana oilfield appraisal / development» Atrush world class oil discovery» Two high potential exploration blocksBlockShaMaranWorkingInterestPartnersOperatorGrossAcresStatusPulkhana 60% Petoil 20%, KRG 20% ShaMaran 130,862 Appraisal & DevelopmentMap showing current and near future well activityArbat 60% KRG 20% + 20% ShaMaran 240,549 ExplorationTaza** 20% Oil Search 60%, KRG20%Atrush* 26.8%* Aspect Energy 53.2%,Marathon 20%Oil Search 124,784 ExplorationGEP* 66,469 Exploration / Discovery* Held through a 33.5% interest in General ExplorationPartners Inc. (GEP)** Formerly known as Block K42

The Opportunity8» Previous discovery on block» Significant contingent resources + upside» Appraisal and workover drilling» Early production system (EPS)being implemented» Potential production ofup to 10kbopd within12 months*PulkhanaAtrush» Major new discovery with upside»Plans for an aggressiveappraisal / programme includingan EPS»3D seismic in progress» Capacity to be a worldclass producer ondevelopmentExistingDiscoveriesGrowth» Extremely attractive explorationacreage in KRG» Billion+ barrel PIIP potential» Aggressive drilling program tocommence by year endTaza / ArbatExplorationNewVentures» Experienced managementteam with Kurdistanexperience» Financial strength» Execution excellence» Structuring to become the leadingoil company in KRG*Internal estimate

Atrush Update9» Gross oil column of over 700 meters. 120 metersnet matrix in the Jurassic with additional 140meters potential net pay in Jurassic Butmah andCretaceous» Atrush-1 tested over 6000 bopd (from threeJurassic horizons, equipment constrained).Potential for flow rates >15,000 bopd* (PI > 200bpd/psi)» Possible upside in the sub-thrust trap andextension of Swara Tika discovery into the Atrushblock» Approved Appraisal Work Programme:» Post-discovery 3D seismic acquisition inprogress» Atrush-2 appraisal well location underconstruction (Q2 2012 spud)» Planning EPF for long-term testing» Planning recompletion of Atrush-1Atrush-1 Mus Formation Test (March 2011)*Internal estimate based on engineering data

Atrush 3D Seismic Acquisition10Vibroseis Acquisition in front of the Atrush featureDrilling seismic shot holes on the slopes

Atrush-1 Jurassic Oil Discovery11Atrush discoveryGross Volumetrics* (MMBO)Low(1C)Best(2C)High(3C)Discovered Jurassic STOIIP 1075 1423 1891Contingent Resources 161 355 661* Post-Drill Evaluation, August 2011 (RPS Energy for GEP)Gross Prospective Resources*(MMBO)Low(1C)Best(2C)High(3C)Cretaceous STOIIP 15 208 451Jurassic STOIIP 125 220 416Footwall STOIIP 9 59 196Cretaceous Resources 3 62 180Jurassic Resources 19 55 146Footwall Resources 1 15 69

Pulkhana Oilfield12» Legacy discovery on trend to major fields inthe area (tested 2,950 bopd from twohorizons in Pulkhana-5 in 1956)» Awarded as a field appraisal / developmentproject. One of the four PSCs awarded priorto permanent Iraq constitutionKirkuk 26 BBOJambur 1.2 BBOPulkhana1956 well tested>2,900 bopd oilOne of the many oil seeps on the Pulkhana structure

Pulkhana Update: PLK-8RE13» Legacy well PLK-8 tested oil from the Shiranish at 2500-3500 bopd» Much improved rates from the 1957 & 2006 tests (av. 600-700 bopd) despite debris and mud losses from 2006 drilling» Significant fracture system providing high deliverability» Better Shiranish oil quality than expected (31.6 deg API, lowgas and very low H2S content)» Successfully drilled additional 60m reservoir section» Planning for well to be connected to Early Production Facilityduring 2012PLK-8RE Testing Shiranish formation (October 2011)

Pulkhana Upside Revealed in PLK-914» Significant upside of over 500+ MMB PIIP*(additional potential in the north & in deeper zonesand along the fault trend)» Post-test confirmation of pre-existing proven» Euphrates (120m potential gross column)» Shiranish (no contact confirmed)» Additional potential» Oil in Eocene Jaddala (31-34° API oil,(140m gross oil column, Oil Down To)» Dhiban (based on logs)» Balambo (380m potential gross columnwith oil shows to well TD)» Untested deeper potential in Jurassic» Pulkhana-9 geological sidetrack in progress to retestthe Cretaceous sections openholeTesting Shiranish inPulkhana-8REAbundant oil over shakers whiledrilling PLK-9 (Balamboformation)*Internal estimates based on 2D seismic

Arbat Update15» High potential exploration block (over 930 km 2 withactive petroleum system – surface seeps)EBADF» Two prospects (Potential PIIP 600 MMB*):» Arbat-A: Main prospect (Arbat-1) – regional Jurassic& Triassic reservoirs» Arbat-B: Shallow Cretaceous prospect (success couldprove the shallow Cretaceous play in the block)» Four major leads with significant mean resourcepotential in excess of 2.2 billion barrels PIIP**C» Acquisition of up to 200 kms of infill 2D seismic inprogress to firm up the leads» Arbat-A well location approved with start of civilengineering imminentArbat*McDaniel & Associates ; **Internal estimates based on 2D seismic and regional reservoir properties

Arbat Structural Leads – Large Surface Anticlines163 large surface anticlines:» Lead E has closure in dipdirection – Strike direction tobe determined by new seismic» Lead F has closure in strikedirection – Dip direction to bedetermined by new seismic» Possible closure in front ofLead E (similar to Arbat Aprospect)

Taza Update17» Option agreement converted to PSC» Significant drillable 4-way dip-closed prospectidentified on trend to Jambur (1.2 BBO) andSarqala (WZR)K42» Presence of surface oil seep and proven oil ontrend increases chance for oil rather than gas» Planning underway to drill an exploration well inQ1/Q2 2012 – PTD ~3400m MD» High flow rates in excess of 9000 bopd fromontrend Sarqala well (Jeribe Fm) providesoptimism for main Jeribe targetOne of the Taza Block Oil Seeps*2011 Operator estimates for Jeribe, Euphrates & Shiranish only

Taza Prospect18» Five regional reservoir targets: Jeribe,Euphrates/Serikagni, Kirkuk Group, Jaddala andShiranish» Estimated mean recoverable oil of 545 millionbarrels, with billion barrel potential*» Internal & Third party audit of all potentialreservoirs ongoing (due year end)A’Gross Prospective Resources*(MMBO)MeanLow(1C)Best(2C)High(3C)Oil Only case 586 94 460 1106ATaza Prospect*2011 Operator /Internal estimates for Jeribe, Euphrates & Shiranish oil only case

Converting Resources to Reserves19Aggressive Schedule:Subject to partner and Government approval

Key Issues / Risks20Politics:» Moving in the right direction. Petroleum Law in Parliament» Baghdad & Erbil working towards resolutions of issues» Cost recovery payments on exports from Kurdistan a majormilestoneGas vs. Oil:» Two assets (Pulkhana & Atrush) are oil only» Increasing evidence that the two exploration blocks areoutside of the main gas-risk fairwayDrilling Operations:» Technical & managerial staff with multi-well (10+) and 5+years Kurdistan experience» Atrush drilled on time and within budget» Pulkhana reservoirs significantly shallower thanneighbouring blocks that experienced operating difficulties inthe south» First operated well drilled within budget. Geological sidetrackin progressArea that appears more gas prone(SNM blocks outside of region)

Building Value21Valuations are difficult due to lack of pure or publicised transactionsInternal estimated value of Contingent Resources / 2P reserves in the range of $4-$8 per barrel*McDaniel & Associates (2010 Report) / RPS Energy (post-drill Atrush-1)

Lundin Group Track Record for Shareholder Return22Company 2002 Present NotesTanganyikaValkyries$0.55/share$13.5 million MC$0.45/share$4 million MCRed Back $1.35/share (2000)$45.4 million MCLundin PetroleumBlackPearlNGEx ResourcesLundin MiningU $0.41/shareU $101 million MC$0.25/share$2.1 million MC$0.40/share$33.8 million MC$0.60/share$4.6 million MC$31.50/share$1.9 billion MC$16.00/share$750 million MC$30.50/share$8.98 billion MC$19.00/shareUS $6.2 billion MC+ Enquest spin offUS$1.2 billion MC$3.79/share$1.1 billion MC$2.78/share$421 million MC$3.91/share$2.34 billion MCSold to Sinopec 2008Sold to LundinPetroleum 2006Sold to Kinross in 2010ActiveActiveActiveActive

Health, Safety & Environment (HSE)23» Good working relationship with local authorities,communities in the area» Excellent Corporate HSE record» No security incidents in the area of operations» Targeted CSR projects have created goodwill in the area

Key Points24» One of the best acreage positions in one of most prospective areas in the world» Size potential of SNM’s projects similar to recent discoveries in Kurdistan» Cash >$ 25 million» Mean unrisked PIIP (gross) in excess of 3.3 billion barrels in four projects*» Two discoveries and two high potential exploration plays» Early production systems in planning stage to allow future exploration / appraisal activity tobe funded from cash flow» Significant industry interest imminent from major players currently operating in the south. Anumber of high-profile deals announced in recent months*McDaniel & Associates / RPS Energy

Profile & Contacts25» Symbol TSX V: SNM» Share CapitalIssued and outstandingFully diluted680,483,860 shares683,717,194 shareswww.shamaranpetroleum.com» Directors and Management» Keith Hill, Chairman of the Board» Pradeep Kabra, Director, President and CEO» Brenden Johnstone, CFO» Mark Grace, Exploration Manager» Serge Manciet, Drilling Manager» J. Cameron Bailey, Director» Alex Schneiter, Director» Gary Guidry, Director» Brian Edgar, Director» ShaMaran Petroleum CorpPradeep Kabra, President & CEO5 Chemin de la Pallanterie1222 VésenazGenevaSwitzerland» Investor RelationsSophia ShaneNamdo Management ServicesSuite 2000885 West Georgia StreetVancouver, BC, Canada V6C 3E8Tel: +41 22 560 8600Fax: +41 22 560 8601Email: pradeep.kabra@shamaranpetroleum.comTel: +1 604 689 7842Fax: +1 604 689 4250Email: sophias@namdo.com

Cautionary Statements26This document contains statements about expected or anticipated future events and financial results that areforward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as legal andpolitical risk, civil unrest, general economic, market and business conditions, the regulatory process andactions, technical issues, new legislation, competitive and general economic factors and conditions, theuncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events andmanagement’s capacity to execute and implement its future plans. Actual results may differ materially fromthose projected by management. References to regional and un-related company oil resources are sourcedfrom industry and other websites. References to resource volume potential and potential flow rates are forgeneral information only and are subject to confirmation. Further, any forward-looking information is made onlyas of a certain date and the Company undertakes no obligation to update any forward-looking information orstatements to reflect events or circumstances after the date on which such statement is made or reflect theoccurrence of unanticipated events, except as may be required by applicable securities laws. New factorsemerge from time to time, and it is not possible for management of the Company to predict all of these factorsand to assess in advance the impact of each such factor on the Company’s business or the extent to whichany factor, or combination of factors, may cause actual results to differ materially from those contained in anyforward-looking information.